• In a capital increase from company funds, the company’s reserves are converted into share capital.
• A capital increase from company funds requires audited and certified annual financial statements.
• The procedure requires the involvement and notarisation by a notary.

• Land subdivision refers to the division of a single property into several separate plots of land.
• In principle, the subdivision of land does not require official approval, although permits may be necessary in certain exceptional cases.
• The most complex and time-consuming step in the subdivision process is the surveying of the newly created plots.

With effect from 31 December 2025, the transitional provisions of Section 48 of the German Condominium Act (Wohnungseigentumsgesetz – WEG) have definitively expired. Since 1 January 2026, the validity of certain legacy provisions vis-à-vis purchasers depends decisively on whether they are registered in the land register. This continues to result in significant practical implications, particularly for property managers.

• A GmbH and a UG are both limited liability companies.
• Forming a GmbH requires significantly higher share capital.
• The conversion of a UG into a GmbH is carried out through a capital increase.

• The heritable building right entitles the leaseholder to acquire ownership of a building constructed on land owned by another party.
• The heritable building right provides a way to acquire ownership of a house without having to purchase the underlying land.
• The leaseholder must pay the landowner a ground rent for the use of the property.
• Heritable building rights are generally granted for a fixed term (e.g. 100 years).

• The purchase agreement for GmbH shares must be notarised.
• Whether the shares can be freely transferred depends on the provisions of the company’s articles of association. Restrictions on transferability may also be stipulated in shareholders’ agreements.
• The notarial fees are based on the value of the shares.